Is Bassett Furniture Industries, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Bassett Furniture Industries, Inc. has moved from fair to very attractive, indicating a favorable shift in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 141, which is significantly higher than peers like Ethan Allen Interiors, Inc. with a P/E of 28.41 and Arhaus, Inc. at 22.58. Additionally, Bassett's price-to-book value stands at 0.85, suggesting that the stock is trading below its book value, while its EV to EBITDA ratio of 16.60 further supports the notion of undervaluation compared to the industry.
In terms of performance, Bassett has shown a year-to-date return of 17.25%, outperforming the S&P 500's return of 12.22% in the same period, although it has lagged behind in longer-term comparisons, such as the 3-year return of -10.17% versus the S&P's 70.41%. This mixed performance underscores the potential for growth in the context of its attractive valuation metrics, particularly against its peers.